How About the Goverment Bail the Little Guys Out?

By
Real Estate Agent with Keller Williams Realty

Brian Como's blog post on The Government Bailout starting me thinking about our ailing housing market.

We are having an awful time getting showings on our listings, let alone real bonafide offers (the ones that aren't 60% off asking and using grandma's feather bed as a downpayment).  How about the Government give $20,000 down payment interest free loan to any buyer purchasing a primary residence. The conditions would be that the loan be paid back when the home sells, the buyer puts in at least 5% down, and total down payment be minimum of 10%, preferably 20%, and buyer cannot take money out of the home with a HELOC or 2nd. Refinance allowed, but no money out.

I think this would motivate all those buyers sitting on the  fence to get out there and buy, which would help our housing market tremendously. Should not be limited to first time buyers. There are plenty of people out there who lost their homes and people who can't buy in another area because their homes haven't sold.

NO MORE 91%-100% down loans.  If people can't save up a down payment, they have no business buying a home.  They need to prove that they can manage their money first! Americans have to STOP thinking like the government, spending money they don't have!

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Ambassador
272,883
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058

I like this idea!  Why don't you contact Sen. Burr's office (he's a smart man by the way) and suggest it?  My husband said, "look... we have 300 million people in the US.  Give everyone $100,000.  That's only 300 Billion - it would save 500 Billion - and we wouldn't have a recession!"

Sep 25, 2008 01:39 AM #1
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

I like that idea also!  They will do nothing to help the individual.

Sep 25, 2008 01:46 AM #2
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Tracy Santrock
Fonville Morisey/Santrock Realty Group, Inc. - Cary, NC
Raleigh - Cary Realtor/Broker In Charge

Wonder where you got that photo? Lord have mercy! A bailout and DPA? WHAT?  I'm not exactly for handouts.  Americans need to accept responsibility for their debts and own up to their debts rather than expecting someone/let alone the government/ to bail them out.  It teaches the next generation the wrong values. 

 

Sep 25, 2008 01:31 PM #3
Rainmaker
67,383
Cathleen OnullHannigan
Keller Williams Realty - Cary, NC
Cary NC Homes Pro

Tracy, what do you think the government is doing?  They are teaching all Americans that spending far more than they make is the American way, and if you are a big irresponsible guy, you get bailed out!  If government is bailing out the big guys who were irresponsible greedy pigs, why not the little guys who are innocent and lost their money in the stock market.

Eleanor, I like your husband's idea.

Jim, thanks for commenting.

Sep 25, 2008 01:41 PM #4
Rainmaker
431,620
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

The Congress, apparently, has agreed to the package as of today.  It just needs to be finalized in writing.  Those funds will help the banks and financial institutions, that are funding real estate.  It will help our market, tremendously.  Get ready to be busy!

It's a Good Life!

Fran

Sep 28, 2008 02:55 AM #5
Anonymous
Brigette Russell

Interesting idea, C.  Not quite sure I'm ready for the gov't to start handing out all those checks, but you can't deny that it would stimulate the heck out of the housing market.  And at least it would be a loan and not just a give-away.  I am still just sick, sick, sick over the whole bail-out thing.

Regarding Eleanor's comment above:  $100K for everyone is $30 trillion, not $300 billion.  A $300 billion give-away would only be $1,000 a person, basically what W did last year.

C, when I post comments on Patrick's blog, it lets me enter the URL of mine so that my comment hyperlinks to my blog.  Can yours do that?

Nov 20, 2008 11:34 PM #6
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Rainmaker
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Cathleen OnullHannigan

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